Financial leaders recognize that the ubiquity of smart devices among users and expenditures are the essential tools that win loyal users, but come with their own risks and challenges.
Mobile-based FinTech solutions are becoming the first port of call for many financial services providers, as users are embracing the rapidity of payments, contactless methods, simplicity, and cost-effectiveness. These are the winning streaks of FinTech application development firms. Financial leaders recognize that the ubiquity of smart devices among users and investments made by firms integrating technologies in financial application developments, are the essential tools that win loyal users.
With the abundance of development in FinTech applications occurring each day, financial leaders should put a spotlight on mandatory security taps on FinTech applications. In fact, with the rising digital choices of FinTech firms, it’s clear that the number of users leveraging finance applications will rise exponentially. From a report by Statista, ‘Smartphone subscriptions worldwide 2016-2021, with forecasts from 2022 to 2027,’ it’s evident that smartphone subscriptions worldwide surpassed six billion in 2021. The forecast says it will grow by several hundred million in the next few years.
The industry’s major players recognize that the pervasiveness of mobile phones and the spending patterns of users must be used as a tool to win loyal users.
Taking these points into consideration, the next thing financial leaders should emphasize on how to secure FinTech applications.
A Security Code Supportive Architecture
Incorporating security codes into every step of FinTech application development is an important step when building a reliable application. To do this, the developers need a well-written algorithm and inspect the code for flaws that can invite security breaches. It is because this step can be worthy while planning new app development. After the security codes are embedded, testing is mandatory to keep a check on whether effective security measures are functional or not. Ensure encryption at every major step of app development
Using AI and MI to Track Transactions
To prevent cyber-attacks, FinTech apps adaptable to upgrades are required, including user IDs, IP addresses, geolocation, transactional activities, and device data. The power of AI and ML plays a crucial role in constantly reading users’ behavior. These activities will help in recording unusual user behavior and common ones as well.
Leverage GPS Data
Another major practice in securing FinTech applications that FinTech services providers must follow is leveraging GPS data. It’s a new practice evolving with the rising new kinds of threats. Global Positioning System (GPS) information is derived from location-based authentication that is embedded in FinTech applications. GPS tracking is a reliable way of monitoring the movements of users which provides valuable data. According to the data, developers use security codes every time an app is being used.
GPS data is an added level of security that allows FinTech firms, banks, or other digital payment providers to gain inputs on app activities periodically. Establishing the geolocation of a user also enables the authentication of their identity that prevents identity theft. In addition, the data also provides customized services for users, which acts as a security gate for threats.
Also Read: Five Big Customer Experience (CX) Transformations in Fintech in 2023
Include APIs and Cloud Servers
The extreme security measure for a Fintech app is creating a secure infrastructure using the cloud and APIs. Most cyber-attacks occur in Application Programming Interfaces (APIs) and cloud servers. They are the weak links of any FinTech application. The good news is back-end security architecture using the cloud can prevent data breaches.
To do this, developers must also have a plan of action to create a secure line connected with the cloud when flaws are discovered. In such cases, limiting dependency on third-party automation should be a prime action.
